Robert Gardner Runs a Small, Local-Only Delivery Service

question 15

Essay

Robert Gardner runs a small, local-only delivery service. His fleet consists of three smaller panel trucks. He recently accepted a contract to deliver 12 shipping boxes of goods for delivery to 12 different customers. The box weights are: 210, 160, 320, 90, 110, 70, 410, 260, 170, 240, 80 and 180 for boxes 1 through 12, respectively. Since each truck differs each truck has different load capacities as given below: Robert would like each truck equally loaded, both in terms of number of boxes and in terms of total weight, while minimizing his shipping costs. Assume a cost of $50 per item for trucks carrying extra boxes and $0.10 per pound cost for trucks carrying less weight.
Formulate the integer goal programming problem for Robert. (Hint: objective function involves decision and deviation variables.)

Comprehend the requirements for reconciling net income to net cash flows under different accounting standards.

Assess the influence of capital expenditures and operating expenses on cash flow statement reporting.

Identify the common adjustments required in the preparation of the cash flow statement using the indirect method.

Understand the components and calculations involved in the cash flow statement.

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Definitions:

Central Banks

National banks that provide financial and banking services for a country's government and commercial banking system, as well as implementing government's monetary policy and issuing currency.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, determined by the central bank.

Interest Rates

The cost of borrowing money or the return on investing, typically expressed as a percentage of the principal, and set by central banks or determined by the market.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.